V.P.Tyagi, J. - (1.) Mr. J.S. Bhati has filed this appeal under Section 22-A of the Chartered Accountants Act, 1949, (hereinafter called 'the Act') challenging the correctness of the order dated 14th September, 1973, passed by the Council of the Institute of Chartered Accountants of India.
(2.) The brief facts giving rise to this appeal are as follows: The appellant is the proprietor of the firm of Chartered Accountants named as M/s. Bhati and Company, Bikaner. It is alleged that the appellant had audited the accounts of Shri Patel Primary School, Sri Ganganagar continuously for the years 1965 to 1969 as the auditor of the said institution. For 1969-70 respondent Shri M.L. Agrawal, the proprietor of the firm of Chartered Accountants carrying on his business in the name and style M/s. M.L. Agrawal & Co., was appointed as the auditor to audit the accounts of Shri Patel Primary School, Bikaner. It is said that the manager of the said school again appointed the appellant to audit its accounts for two years i.e. for the years 1970-71 and 1971-72. The grievance of Mr. M. L. Agrawal is that the appellant accepted this assignment for auditing the accounts of Shri Patel Primary School without complying with the mandatory requirements of Section 22 read with Clause (8) of Schedule 1 of the Act, inasmuch as the appellant did not even care to send any notice to the respondent of his intention to accept this assignment.
(3.) The case of the appellant is that he received a letter of appointment from the Manager of Shri Patel Primary School on April 3, 1971, and on April 5, 1971, he sent a letter under a certificate of posting to respondent No. 2 intimating that the appellant had been appointed by the Manager of the said Institution and he intends to accept that appointment provided the respondent No. 2 had no objection; and the respondent Agrawal was requested to send his reply if be had any objection to this proposal. According to the appellant he waited for the respondent's reply till April 17, 1971 when he audited the accounts of Shri Patel Primary School.;